In a tumultuous year for Intrusion Inc., the cybersecurity firm's stock has plummeted to a 52-week low, touching a distressing price level of $0.42. According to InvestingPro data, the RSI indicates the stock is in oversold territory, while maintaining impressive gross profit margins of ~78%. This latest dip underscores a harrowing period for the company, which has seen its stock value erode by an alarming 91.12% over the past year. Investors have been grappling with a series of challenges, including rapid cash burn and short-term obligations exceeding liquid assets, with a concerning current ratio of 0.72. InvestingPro analysis reveals the company is currently trading below its Fair Value, with 12 additional key insights available to subscribers. The steep year-over-year decline has raised concerns about the company's future prospects and its position within the competitive cybersecurity landscape.
In other recent news, Texas-based INTRUSION Inc. has seen significant financial developments. The cybersecurity solutions provider reported its second consecutive quarter of revenue growth, with total revenues reaching $1.5 million, a 3% sequential increase. This growth was primarily fueled by the company's Shield product line, which experienced a 49% sequential revenue increase, largely due to a new $2 million contract with the U.S. Department of Defense. Despite a slight decrease in consulting revenue, the company's net loss improved from $3.2 million to $2.1 million year-over-year.
In addition to its financial performance, INTRUSION Inc. has also been active in managing its capital structure. The company executed an unregistered exchange of equity securities with Streeterville Capital, LLC, swapping 68 shares of its Series A Preferred for 110,340 shares of its common stock. This transaction, valued at $74,800, represents a conversion within the existing capital structure of the company.
INTRUSION Inc. has also launched an incentive program to encourage the exercise of outstanding warrants. The exercise price of the existing warrants, covering a total of 3,198,082 shares of common stock, has been reduced to $0.76 per share. This initiative is part of INTRUSION’s strategic efforts to stimulate the conversion of these warrants into common stock, potentially leading to an increased number of shares in the market and additional capital for the company.
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